Economic Government: What Kind of Coordination for the Eurozone?

How are decisions made in the euro area? And how democratic are they? These questions moved to the centre of the debate during the euro crisis. Under tremendous time pressure, solutions had to be found for stabilising the euro. New institutions and rules were created. Who makes the decisions in the Eurozone today? Is there a democratic deficit? Does the currency union need better control mechanisms – or are the old ones good enough?

How are decisions made in the euro area? And how democratic are they? These questions moved to the centre of the debate during the euro crisis. Under tremendous time pressure, solutions had to be found for stabilising the euro. New institutions and rules were created such as the European Stability Mechanism, the Banking Union and the Fiscal Compact. This briefing, written by Katharina Gnath, senior project manager at the Bertelsmann Stiftung, looks at how decisions in the Eurozone are made today and whether there is a democratic deficit. It examines whether the currency union needs new and better control mechanisms – maybe even up to the point of a genuine European economic government.

In the publication series “Europa briefing”, the Bertelsmann Stiftung and the Jacques Delors Institut – Berlin cover key topics of European politics and present possible scenarios: What is the problem? What might happen next? And what can politics do now? You will find all the publications from the joint project here:? www.strengthentheeuro.eu